Ace Software Exports Limited has provided Corporate Guarantee in favour of ICICI Bank in connection with overdraft facility availed by QeNomy Digital LLP, wholly owned subsidiary of the Company.
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Ace Software Exports Limited has given a corporate guarantee to ICICI Bank for an overdraft facility of Rs. 5 Crores taken by its wholly owned subsidiary, QeNomy Digital LLP. The facility has a one-year tenor and is secured by a Rs. 4 Crore fixed deposit, a personal guarantee from promoter Amit Mansukhlal Mehta, and the company's corporate guarantee. The transaction is described as being at arm's length, and the company states there is no current impact on it, though the guarantee represents a contingent liability.
Shareholders should note that the parent company is now a contingent guarantor for a Rs. 5 Crore overdraft of its subsidiary, but the exposure is largely covered by a Rs. 4 Crore fixed deposit as security, limiting real risk. For the stock, this is a routine intra-group financial arrangement with limited near-term impact.